Ghana’s Parliament has officially abolished the Electronic Transactions Levy (E-Levy), a tax measure that faced strong opposition since its implementation in May 2022. Initially introduced to boost government revenue, the levy was widely criticized for placing an undue financial burden on low-income individuals, small businesses, and families. Its abolition fulfills a key campaign promise of the National Democratic Congress (NDC) during the 2024 general elections.
According to Prophet Moses Bennisan, author of Ghana’s Economic Emergence: Navigating the Path to a Better Ghana, the E-Levy failed because it did not align with the welfare of citizens. “The E-Levy was not of God, and that is why it failed,” he stated. He further emphasized that economic policies should be rooted in thorough research and analysis rather than guesswork. “Policies must prioritize the well-being of the people and involve citizens in decision-making to ensure cooperation.”
While the E-Levy was meant to increase government revenue, critics argue that Ghana’s economic challenges stem not just from revenue generation but also from mismanagement of funds. Prophet Moses and other economic experts have urged the government to broaden the tax base, ensuring more individuals and businesses contribute fairly to national development. “The focus should not only be on taxing electronic transactions but rather on effective revenue management and equitable taxation,” he added.
The decision to scrap the levy has been widely welcomed, with many praising the John Mahama-led administration for listening to public concerns and fulfilling its campaign promise. As Ghana navigates its economic future, analysts stress the need for sustainable tax reforms, improved revenue management, and reduced government expenditure to ensure financial stability and economic freedom.
Prophet Moses Bennisan is a passionate nationalist and a keen observer of Ghana’s socio-economic landscape. As the head pastor of Family Altar Ministry and an astute business consultant, he merges spiritual guidance with insights gained from daily struggles, realizing that the challenges faced by Ghanaians can be addressed through thoughtful policies. His thoughts in the book “Ghana’s Economic Emergence” reflect his love for Ghana and the commitment to ignite a meaningful conversation towards building a better Ghana.
Written by: Maame Adwoa Akotaah Mensah
